BusinessDay

Nigerian Banks gain strides in African operations

...records 82% revenue rise in 5 years

Analysts consider Nigeria to be ‘a mega market’, however, Nigeria’s biggest banks’ appetite for the continent is not waning. The logic may not be new but the current situation reinforces it.

Findings by BusinessDay showed even if the pace and pattern of continental expansion by different Nigerian banks vary, moving into other African markets allows for diversification of assets and balances profitability against results in Nigeria.

Ghana and Sierra Leone are traditionally mentioned as the preferred locations for Nigerian banks in West Africa; however, in East Africa, Kenya, Rwanda and Tanzania should also be mentioned.

It should be noted that Nigeria’s Zenith Bank is also established in The Gambia, GT Bank in Côte d’Ivoire while First Bank of Nigeria (FBN) has a subsidiary in Senegal.

Only Access Bank, finally, seems to be getting out of the classic pattern adopted by its compatriots, through breakthroughs in southern Africa and its ambitions in North Africa.

“Although we expect this expansion to improve the diversification and stability of the bank’s revenues, it could also increase its risk profile (especially operational and regulatory risks) in the medium term,” Yinka Adeoti, of Global Credit Ratings Nigeria said.

Analysis by BusinessDay showed the tier one banks – First Bank, UBA, GTco, Access and Zenith Bank raked in N2.82 trillion from its subsidiary in Nigeria with N701 billion from other subsidiaries in the rest of Africa.

In 2020, tier 1 banks collectively raked in N2.48 trillion from their subsidiary in Nigeria while subsidiaries in the rest of Africa collectively raked in N563 billion.

 

First Bank

First Bank’s subsidiary in Nigeria contributed the highest revenue in five years compared to other subsidiaries in the rest of Africa.

In 2021, revenue obtained from Nigeria was at N699.8 billion while N57.44 billion was generated from its subsidiaries outside Nigeria.

First Bank revenue stood at N505.9 billion in Nigeria while outside Nigeria, the sum of N84.66 billion was recorded in 2020.

Revenue stood at N506.3 billion for the bank subsidiary in Nigeria, while First Bank outside Nigeria raked in N84.1 billion revenue in 2019.

In 2018, First bank obtained N499.15 billion in revenue from its Nigeria subsidiary. However, the subsidiaries outside Nigeria collectively raked in a sum of N88.25 billion.

First Bank recorded N508.2 billion as revenue from its Nigeria subsidiary

While subsidiaries outside Nigeria collectively recorded N87.25 billion in 2017.

The bank’s non-current assets in Nigeria stood at N89.8 billion in 2021 compared to N26.17 billion from its other subsidiaries outside Nigeria.

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United Bank for Africa

United Bank for Africa(UBA) revenue obtained from Nigeria was N372.7 billion in 2021, and N275.5 billion was recorded for other subsidiaries in the rest of Africa.

In 2020, the bank revenue from its Nigeria subsidiary stood at N372.2 billion compared to the rest of Africa which summed up to N227.45 billion.

Revenue stood at N403.2 billion for the UBA subsidiary in Nigeria, while UBA in the rest of Africa contributed the sum of N166.2 billion in 2019.

In 2018, UBA obtained N338.8 billion in revenue from its Nigerian subsidiary. The bank’s subsidiaries in the rest of Africa raked in N152 billion.

UBA Nigeria’s revenue stood at N314.5 billion while UBA in the rest of Africa raked in the sum of N150.7 billion in 2017.

The bank saw N52.9 billion profit in its Nigeria subsidiary and N66.7 billion in 2021 from subsidiaries in the rest of Africa.

UBA customer and bank deposits amounted to N4.22 trillion in Nigeria, and the rest of Africa subsidiaries recorded N2.76 trillion in 2021.

Total segment assets for UBA in Nigeria stood at N5.3 trillion, and the rest of Africa’s subsidiaries totaled N3.31 trillion in 2021.

Guaranty Trust Holding Company

Guaranty Trust Holding Company (GTco) revenue obtained from Nigeria was N331.7 billion in 2021 while N111.3 billion was recorded for the rest of Africa.

GTc0’s revenue in Nigeria stood at N363.2 billion compared to the rest of Africa which totaled N87.22 billion in 2020.

Revenue stood at N347.6 billion for GTC0’s subsidiary in Nigeria, while FBN in the rest of Africa contributed N79.4 billion in 2019.

In 2018, GTC0 obtained N356.2 billion in revenue from its Nigeria subsidiary. The bank’s subsidiary in the rest of Africa raked in N70.34 billion.

GTC0 Nigeria’s revenue stood at N355.7 billion while GTC0 in the rest of Africa raked in the sum of N55.17 billion in 2017.

In 2021, GTco’s profit before income tax was at N169.4 billion, the highest compared to N58.18 billion by its subsidiaries in the rest of Africa.

GTco derived N331.7 billion from external customers in Nigeria while GTco subsidiaries in the rest of Africa derived N111.3 billion in 2021.

Net assets stood at N646.9 billion for GTco in Nigeria while N210.9 billion was accounted for in its subsidiaries in the rest of Africa.

Access

Access banks in Nigeria contributed the highest revenue compared to other subsidiaries in the rest of Africa for five years.

In 2021, Access bank’s revenue from its Nigeria subsidiary was N734.3 billion while N82.8billion was obtained from subsidiaries in the rest of Africa.

Access bank’s revenue stood at N635.6 billion in the Nigeria subsidiary compared to Access bank in the rest of Africa which collectively brought in N89 billion in 2020.

Revenue stood at N572.06 billion for Access bank subsidiary in Nigeria, while Access bank in the rest of Africa contributed N61.7 billion in 2019.

In 2018, Access bank obtained N212.6 billion in revenue from its Nigerian subsidiary. The bank’s subsidiaries in the rest of Africa raked in N29.8 billion.

Access bank in Nigeria raked in N398.1 billion while Access in the rest of Africa raked in the sum of N38.7 billion in 2017.

The profit from Access Bank in Nigeria amounted to N106.48 billion in 2021 while the bank’s subsidiaries in the rest of Africa recorded N47.59 billion.

The bank’s customer deposit in Nigeria amounted to N5.52 trillion in 2021. During the same year, its subsidiaries in the rest of Africa raked in a total of N1.04 trillion in customer deposits.

The bank’s net assets in 2021 amounted to N871.45 billion in Nigeria, and N231.12 billion in the rest of Africa.

Zenith Bank

Zenith bank obtained N688.16 billion in revenue from its Nigeria subsidiary in 2021, while N74.7 billion was collectively obtained from its subsidiaries in the rest of Africa.

Zenith Bank got N606 billion in revenue in 2020 while the bank’s subsidiaries in the rest of Africa totaled N74.6 billion revenue in 2020.

Revenue stood at N575.07 billion for Zenith bank subsidiary in Nigeria, while subsidiaries in the rest of Africa recorded N68.23 billion in 2019.

In 2018, Zenith bank obtained N548.3 billion in revenue from its Nigerian subsidiary. The bank’s subsidiaries in the rest of Africa raked in N68.5 billion.

Zenith bank’s revenue from its subsidiary in Nigeria stood at N684 billion while Zenith bank in the rest of Africa raked in the sum of N53.8 billion in 2017.

Zenith bank, in 2021 recorded a profit after tax of N239.9 billion in Nigeria and N18.3 billion in the rest of Africa.

In 2021, Zenith bank derived revenue of N671.54 billion from external customers in Nigeria and N74.70 billion in the rest of Africa.

The bank recorded its total assets at N7.90 trillion in Nigeria while N688.04 billion was recorded for the rest of Africa in 2021.

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